PAL Holdings Inc. (PHI) Thursday,  (June 17) reported a net comprehensive loss of P73 billion on total revenues of P55.3 billion and total expenses of P81.8 billion for the 2020 calendar year.

PAL Holdings managed to reduce its expenses by 46 percent versus 2019. However, this was offset by a 64 percent decline in revenues, reflecting the extraordinary impact of the COVID-19 pandemic on the operations of PHI subsidiary Philippine Airlines, Inc. (PAL).

The global airline industry bled over P6.1 trillion in the wake of a 65.9 percent decline in airline passenger traffic, the sharpest drop in history, according to the International Air Transport Association (IATA).

Locally, the Philippine Government halted all commercial flights in April, May and part of March 2020 as part of a nationwide community quarantine, while local and worldwide travel restrictions held airlines down to a limited number of flights for the rest of 2020.

This year, PAL increased its regular flights on most of its pre-pandemic routes, in addition to new all-cargo services and special repatriation flights on multiple routes to North America, the Middle East, Asia and throughout the Philippines.

The flag carrier also drew on bridge funding and support from its majority shareholder; deferred payments through the forbearance of lessors, lenders and suppliers, carried out a retrenchment program and implemented cost-cutting measures.

To complete PAL's recovery, its management and stakeholders are working on the final stages of a comprehensive restructuring plan that will enable the airline to emerge financially stronger from the current global crisis, PAL said in its statement issued today.

"PAL management will make the necessary disclosures at the proper time, once details are finalized," according to the statement.

"We are confident that the restructuring will enable PAL to strengthen its capital structure, meet stakeholder obligations and position the company for long-term success."

PAL’s flights and operations will not be affected in any restructuring, the airline underscored.

"We will increase our international and domestic flights as the market recovers with easing of travel restrictions."

The airline’s shareholders, management and employees remain resolute in fulfilling the flag carrier’s mission to provide essential air services for travelers, for the repatriation of our citizens, and for the transport of vaccines and other medical and economic shipments that support the economic recovery of the Philippines.